Multiple Choice Questions on Assertion A Fiscal deficit is measured in terms of borrowings Reason R External borrowings incr........... for Common University Entrance Test (CUET) Preparation

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Multiple Choice Questions

Assertion A Fiscal deficit is measured in terms of borrowings Reason R External borrowings incr...........

Introductory Macro Economics Government Budget and Economy
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    Assertion (A): Fiscal deficit is measured in terms of borrowings.

    Reason (R): External borrowings increases the Fiscal deficit.

     

    Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).


     

    Correct Answer

    Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
     

    Incorrect Answer

    Assertion (A) is true, but Reason (R) is false.
     

    Incorrect Answer

    Assertion (A) is false, but Reason (R) is true.

    Incorrect Answer
    Explanation:

    Option (1) is correct.
    Explanation: Fiscal Deficit refers to the excess of total expenditure over total receipts excluding borrowings. It indicates borrowing requirements of the government.

     

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